TaxTMI 
TaxTMI 
2024 (9) TMI 728
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.... 11.11.2014 on the premises of the assessee comprising Apple Group of cases. The Group popularly known as Apple Group of Companies (AGC) is a diversified Group with multiple business interests and it was established in 2000. The Group is presently engaged in various businesses and deals in various different fields like metal, coal, construction, commodity, trading etc. at Noida, Bellary (Karnataka), Anantpur (Andhra Pradesh), Hyderabad, Mumbai etc. 4. In order to assess the income of the assessee consequent to search, a notice under section 153A of the Act was issued and served on the assessee. In response, assessee has e-filed the return of income on 30.03.2013 declaring total income of Rs. 1,23,650/-. Subsequently, notices under section 143 (2) & 142 (1) were issued and served on the assessee along with questionnaire. In response, ld. AR of the assessee attended and submitted the relevant information as called for. 5. The assessment under section 153A of the Act was completed by making addition under section 68 of the Act. 6. Aggrieved with the above order, assessee preferred appeal before the ld. CIT (A) and before ld. CIT (A), assessee has raised several jurisdictional....
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.... Name of the assessee PAN A.Yrs. 1 Sh. Narender Kumar Garg AEKPG6296A 2009-10 to 2015-16 2 Smt. Shaloo Narender Kumar Garg AADPG1563F 2009-10 to 2015-16 3 Sh. Yogender Kumar Garg ABIPG9791 P 2009-10 to 2015-16 4 Smt. Madhu Garg ABIPG9792Q 2009-10 to 2015-16 5 Sh. Pulkit Garg AJEPG5760A 2009-10 to 2015-16 6 Smt. Ruchi Garg AAIPG1671M 2009-10 to 2015-16 7 Sh. Pawan Kumar Garg AAHPG8132G 2009-10 to 2015-16 8 M/s Apple Industries Ltd. AAGCA9960N 2009-10 to 2015-16 9 M/s Nirman Stelco Pvt. Ltd. AACCN4842Q 2009-10 to 2015-16 10 M/s M.G. Mettalloy Pvt. Ltd. AAGCM5789D 2011-12 to 2015-16 11 M/s Promart Retail India Pvt. Ltd. AAFCP8743B 2009-10 to 2015-16 12 M/s Apple Sponge & Power Limit AAFCA1965L 2009-10 to 2015-16 13 M/s Apple Metal Industries Ltd. AAACD7670E 2009-10 to 2015-16 14 M/s Apple Buildtech Ltd. AAFCA8106K 2009-10 to 2015-16 15 M/s Apple Insurance Brokers Pvt. Ltd. AAECA5320N 2009-10 to 2015-16 16 M/s Zync Global Pvt. Ltd. AAACZ5235H 2012-13 to 2015-16 17 M/s Apple Iron Ente....
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....2009-10 to 2015-16 16 M/S Zync Global Pvt. Ltd. AAACZ5235H 2012-13 to 2015-16 17 M/S Apple Iron Enterprises Pvt. Ltd AAHCA8642G 2010-11 to 2013-14 18 M/S Mastermind Trade-in-Private Ltd AAECM9435E 2009-10 to 2015-16 3. A technical approval is accorded to pass assessment orders in the above cases on the basis of the drafts assessment orders submitted for the assessment years in reference years. You are directed to ensure taking into account the seized documents/papers and comments in the appraisal report pertaining to A Yd. The fact of initiation of penalty proceedings, wherever, applicable, must also be incorporated in the last para of the order. The initiation of correct penalty provisions of LT. Act u/s27 I (1)(c)/27l AAB per facts of the case must be ensured. 4. This office reference no of approving the draft orders shall invariably be quoted in the assessment orders to be passed. A copy of final assessment orders passed in these cases should be sent to this office for record immediately on passing the assessment orders. 5. It must also be ensured that if any document in this case pertains to any third party assessed....
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.... PCIT v Subhodh Agarwal- 2023 (2) TMI 1072 - Allahabad High Court 4. Reliance is also placed on the following case laws wherein, on similar facts as in the case of the assessee, the approval under section 153D was held to be invalid and consequently the assessment order was held to be null and void:- The Pr. Commissioner of Income Tax Versus Smt. Shreelekha Damani 2018 (11) TMI 1563 - BOMBAY HIGH COURT M/S Inder International Versus the A.C.I.T., Central Circle-II 2021 (6) TMI 416 - ITAT CHANDIGARH Sh. Inder Pal Singh Arora, Sh Sunrinder Pal Singh Kohli v. Dy. CIT, Central Circle, Dehradun - 2021 (6) TMI 933 - ITAT Dehradun Rajesh Ladhani v. Dy. CIT - Central Circle, Agra - 2019 (11) TMI 920 - ITAT Agra Uttarakhand Uthan Samiti v. ITa, Ward -45(5), New Delhi 2020 (4) TMI878 - ITAT Delhi Rishabh Buildwell P. Ltd., R.G.V. Fininvest P. Ltd., Shristhi Computers P. Ltd. And Aggarwal Capfin Financial Services Pvt. Ltd. Versus Dcit, Central Circle, Ghaziabad 2019 (7) TMI 365 - ITA T Delhi Dilip Constructions Pvt Ltd. Versus Acit, Circle-l, Bhubaneswar. And (Vice- Versa) And Shilpa Seema Constructions Pvt Ltd. Vers....
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.... In the backdrop of the unequivocal observations made by the JCIT, approval granted under Section 1530 apparently does not meet the requirement of law and hence assessment orders passed in consequence of such non-est approval is a nullity in law. The assessment order thus passed is vitiated in law which illegality cannot be cured. 10. In nutshell, the approval under S. 153D is repugnant for more than one reasons: (i) the approval accorded under Section 153D is admittedly without any occasion to refer to the assessment records and seized materials, if any, incriminating the assessee and hence such approval is in the realm of an abstract approval of draft assessment orders and consequently suffered from total non-application of mind. (ii) approval granted hurriedly in a spur involving voluminous assessments spanning over 5 assessment years admittedly a symbolic exercise to meet the requirement of law. The JCIT himself has made such fact abundantly clear without any demur. (iii) The red flag raised by JCIT and unambiguous assertions of the JCIT himself that the approval granted is in the nature of "technical approval" and he is having very little ti....
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....he respective Assessment order. The solemn object of entrusting the duty of Approval of assessment in search cases is that the Additional/ Joint CIT concerned, with his experience and maturity of understanding, should at least minimally scrutinize the seized documents and any other material forming the foundation of Assessment. It is elementary that whenever any statutory obligation is cast upon any statutory authority, such authority is required to discharge its obligation not mechanically, not even formally but after due application of mind. Thus, the obligation of granting Approval acts as an inbuilt protection to the taxpayer against arbitrary or unjust exercise of discretion by the AO. The approval granted under section 153D of the Act enjoins due application of mind and if the same is subjected to judicial scrutiny, it should stand for itself and should be self-defending. There are long line of judicial precedents which provides guidance in applying the law in this regard. At the cost of repetition, it may be reiterated that in the instant case, the approving authority has granted a mere 'technical approval' by his own express admission in departure to a substantive a....